MAN president seeks reduction in import duties
The President of Manufacturers Association of Nigeria (MAN) Dr Frank Jacobs has canvassed a radical reduction in the Import Duties on raw materials into Nigeria.
Jacobs, at the commissioning of a world class syringe and needle complex HMA in Ilorin, said the standard practice the world over on the proposition remained five per cent Import Duties as against Nigeria’s 35 per cent.
For him, Nigeria should revive all its ailing industries noting that countries that used manufacturing, as their economic pivot would be advantageous in job creation endeavours above the ones that export their raw materials.
According to him, “35 per cent of duties for a nation like Nigeria on importation are killing our indigenous companies. In many other countries it is a mere five per cent. We should also note that countries that process their raw materials are the ones creating job opportunities. While doing this, government should put up policies that would protect the local industries.”
He canvassed a favourable tax policy for the nation’s industries, just as he canvassed a speedy implementation of the National Action Plans noting that many present day Nigerian manufacturers operated as “risks takers”, rather than promising investors.
The HAM Medical Syringe and Needle Production Plant is a wholly indigenous owned venture with partnership with a Sino-German company. According to the Chairman Board of Directors of the HMA, Hon. Ayodele Shittu, the company would expand the plant from the current capacity of 200 Million Syringes and 350 Million Needles per annum, to 500 Million Syringes and 700 Million Needles respectively in the next three years. Besides, it has in its payroll over 200 staff and 700 ones recruited as causal workers.
According to Shittu, “our products will be exported to the West African Countries and the African Union (AU) countries. This will save and earn us scarce forex. Raw Materials are also available locally from Eleme Petrochemical Industry.”
He added, “in order to protect the local manufacturers of syringes/needles and safeguard the interest of consumers, we advocate a lower tariff of 5 per cent cumulative on the importation of raw materials and zero duty for the importation of plant and machinery for companies interested in the production of the device and a 20 per cent Import Duties plus 50 per cent Import Adjustment Tax making a cumulative of 70 per cent for importers of Finished Syringes and Needles.”
